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Apartments near Gilbert Town Hall OK'd

The Republic | azcentral.com
Published 9:30 a.m. MT Nov. 26, 2014

A rendering of the project planned for the vacant land by the Gilbert Town Hall.(Photo: Town of Gilbert)

Story Highlights

The Gilbert Council voted 4-3 in favor of rezoning land near Town Hall for a new apartment complex

A mixed-use development was originally planned to be built on the site

Opponents of the project take issue with the lack of connectivity between residential and commercial

A project that includes apartments, offices and retail shops on vacant land northeast of Town Hall got the green light this month.

The Gilbert Town Council narrowly approved rezoning the land. The 4-3 vote came as some council members raised concerns that the apartments would be disconnected from the commercial development.

The 37 acres surrounding Town Hall was originally slated to be a mixed-use development featuring residential lofts above businesses.

But when the developer, Lehman Brothers, declared bankruptcy in 2008, it sold 12 acres to Banner Health for a new health center, which was completed in 2013.

The Banner complex cut the remaining 25 acres of vacant land into separate parcels.

Now, AZ Gilbert Holdings, Lehman Brother's local subsidiary, is trying to build an apartment complex on the eastern plot, and offices and retail shops to the north. To do so, the company needed the council's blessing.

To address concerns, the developer added a "fitness trail" with exercise equipment to connect the apartment complex to Banner and pedestrian walkways.

An aerial view of where the apartments are planned to be built.(Photo: Town of Gilbert)

If all goes to plan, Alliance Residential will build the apartment complex and the Peterson Group will build the commercial development.

The three-story apartment complex would have 256 units and six to eight office buildings would go up on the other parcel north of Town Hall.

Gilbert has the fewest multifamily residential developments among municipalities in the Phoenix area.

Lehman's attorney, Paul Gilbert, of Beus Gilbert, said the project is projected to generate $7 million from taxes and $625,000 in ongoing revenue to the town.

Vice Mayor Eddie Cook, who voted against the project, said he would support only a development that is non-residential based.

Cook said he believes apartment complexes are more appropriate near freeways or large commercial developments. The vacant land in question is in the middle of Gilbert, several miles from freeways in either direction.

A couple of residents sent the town e-mails opposed to the project.

Gilbert Councilman Ben Cooper, who voted for the project, said the council holds some of the blame for approving the Banner site without further consideration of the vacant land beside it.

"Voting for that case effectively pretty much dismantled any opportunity for integration for this project," Cooper said. "I really think . . . we, the council of the town of Gilbert, have some responsibility to bear."

Mayor John Lewis, who was the deciding vote, said he was initially apprehensive about the apartment complex, but support of the project by local businesses changed his opinion.

"They can use some help and it just feels to me like I'm ready to give them that help," he said.